Deal raises funds for exploration, working capital, corporate purposes
By Devika Patel
Knoxville, Tenn., June 23 - Blue Note Mining Inc. said it raised C$793,800 in the first tranche of a C$2 million private placement of units and stock. The deal, which priced June 6, is being conducted through agent Industrial Alliance Securities Inc. on a best-efforts basis and has a 15% greenshoe for C$300,000.
The company is selling 12.5 million units at C$0.08 apiece for C$1 million and 9,090,909 flow-through common shares at C$0.11 per share for C$1 million. In the first tranche, Blue Note sold 6,698,000 flow-through shares for C$669,800 and 1.55 million units for C$124,000.
Each unit consists of one common share and one half-share warrant, with each whole warrant exercisable at C$0.11 for 18 months.
The price of the flow-through shares and the strike price of the warrants is a 29.41% premium to the June 3 closing share price of C$0.085.
The company expects to close a second tranche on July 15.
Proceeds will be used for exploration, working capital and for general corporate purposes.
Blue Note is a gold exploration company based in Montreal.
| Issuer: | Blue Note Mining Inc.
|
| Issue: | Units of one common share and one half-share warrant, flow-through common shares
|
| Amount: | C$2 million
|
| Greenshoe: | 15%, or C$300,000
|
| Agent: | Industrial Alliance Securities Inc.
|
| Pricing date: | June 6
|
| Settlement date: | June 23 (for C$793,800), July 15
|
| Stock symbol: | TSX Venture: BNT
|
| Stock price: | C$0.085 at close June 3
|
| Market capitalization: | C$9.54 million
|
|
|
| Units
|
| Amount: | C$1 million
|
| Units: | 12.5 million
|
| Price: | C$0.08
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | 18 months
|
| Warrant strike price: | C$0.11
|
|
|
| Shares
|
| Amount: | C$1 million
|
| Shares: | 9,090,909
|
| Price: | C$0.11
|
| Warrants: | No
|
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